Flexible Spending Accounts

There are three types of Flexible Spending Accounts you may enroll in: a Full Flexible Spending Account (FSA), a Limited Flexible Spending Account (LMT) for Basic Health members only, and a Dependent Daycare Reimbursement Account for care of family members who cannot care for themselves (children under age 13, eldercare, etc.). You may not have both a Full FSA and LMT.

Flexible spending accounts enable you to pay for certain expenses on a pre-tax basis, making your money go farther. For example, setting aside $5,000 in a Dependent Daycare Reimbursement account enables you to spend the whole $5,000 on daycare. Receiving the $5,000 in pay would leave roughly $3,500 after taxes for daycare expenses. Learn more in the resources at the bottom of this page.

Full Flexible Spending Account

Full amount of annual contributions available after the first paycheck of each plan year

Limited Flexible Spending Account

Available for Basic Health participants

Helps offset out-of-pocket dental and vision care expenses; may be used in combination with a Health Savings Account (HSA)

Full amount of annual contributions available after the first paycheck of each plan year

Dependent Daycare Reimbursement Account

Funds available after they have been put into your account (meaning the amount increases as additional contributions come from your paychecks)

May be more beneficial than the federal dependent care tax credit for most individuals whose adjusted gross income is greater than $25,000 (consult a tax professional for an assessment of your personal situation)

Opening an FSA

Eligibility

Active, benefit-eligible employees are able to have FSA accounts

Dependent Eligibility: You may only use funds for your dependents if they are claimed as such on your taxes

Annual Contributions

Your elections are for the calendar year. That means that if you are hired in November and elect to put $500 into your FSA, you will have to use it all by the end of December (it will be deducted from your paycheck, and the ability to use it will not carry over into the next calendar year). UVA will not make retroactive changes to excess contributions or deductions.

Contribution limits are per household; if you and your spouse both have FSAs, you cannot contribute more than the limit between the two of you.

Minimum: $120

Maximum for Full FSA or LMT: $2,500

Maximum for Dependent Daycare: $5,000

Mandatory Direct Deposit: For all paper claims, direct deposit is required. If you are a new enrollee, you must provide direct deposit information on your personal Chard Snyder account for reimbursement of all non-Benny Card transactions.

Mid-Year Changes

If you have a change in status (marriage, divorce, new dependent, loss of coverage through partner’s work, etc.), you may want to make changes to your FSA contributions, newly enroll, or cancel altogether.

Check if you’re eligible to make changes: During the plan year, changes are allowed only if you have a change in status and provide documentation. To see if you are able to make mid-year changes, review the list of life events that cause a change in status linked below in Resources.

Make a request within 60 days: Requests to modify flexible spending accounts due to a change in status must be received in HR within 60 days of the date of the event that caused the change in status.

Check your account: Allowable changes take effect the first of the month after you made the request.

Leave-Related Changes

You can only contribute to a health care FSA during unpaid leave, not to a dependent care FSA

If you want to receive reimbursements during unpaid leave, you must make after-tax contributions to your account; reimbursement is based on the total amount you elect for the year and will be paid on request

If you did not cancel or request a change in participation before taking leave and you return in the same year, you will pay more monthly or biweekly to reach your annual contribution amount